How NHF contributions and loans work
The NHF was set up by federal law to give ordinary workers access to cheap long-term housing finance.
Contributions. Public-sector employees and self-employed people must pay a fixed share of their monthly income into the fund. Since the Business Facilitation Act amendment, private-sector employees may choose whether to contribute. Employers deduct the contribution and send it to the Federal Mortgage Bank of Nigeria (FMBN).
The loan. After a minimum period of continuous contributions, a contributor can apply for an NHF mortgage. FMBN lends the money to an accredited primary mortgage bank, which on-lends to the contributor at a low fixed rate over a long term. The rate, maximum term, minimum contribution period and loan ceiling are in the figures box. FMBN raised the ceiling in 2025.
What the loan can be used for. Buying a completed home, building on land you already own with acceptable title, or improving a home.
What decides how much you can borrow. The ceiling is a maximum, not an entitlement. Your loan depends on your income, age, the property's value and the lender's assessment of what you can repay.
The catch. Demand far exceeds the number of loans granted, processing can be slow, and the property and its title must satisfy FMBN and the mortgage bank. Many contributors never borrow.
Differences by state
- Nationwide: NHF loans are processed through accredited primary mortgage banks in every state.
- Lagos and Abuja: most accredited lenders and FMBN-backed estates are concentrated here.
What to check
- Your NHF contribution history, which you can get from FMBN or your employer.
- That your mortgage bank is on FMBN's current accredited list.
- That the property and title meet FMBN's requirements before paying a deposit.
- The full repayment schedule, including insurance.
Risks to know
- Agents who promise guaranteed NHF approval for a fee.
- Payments to individuals rather than the accredited lender.
- Estates advertised as NHF-backed without written confirmation from FMBN or the lender.
Typical cost or timeline
NHF mortgage interest rate to contributors
6 % a year (fixed)
As of October 2026
NHF mortgage maximum loan (raised in 2025)
50,000,000 naira
As of October 2026
Minimum continuous contributions before applying
6 months
As of October 2026
Contribution by public-sector employees and self-employed people (optional for private-sector employees since February 2023)
2.5 % of monthly income
As of October 2026
Sources differ
SOURCE 1
The original National Housing Fund Act sets the contribution at a share of basic monthly salary, which is still how many payrolls and FMBN guidance describe it.
Federal Mortgage Bank of Nigeria
2004
SOURCE 2
The Business Facilitation Act amendment words the contribution as a share of monthly income and makes it optional for private-sector employees.
February 2023
National Housing Fund vs Commercial mortgage
| Aspect | NHF loan | Commercial mortgage |
|---|---|---|
| Who can borrow | NHF contributors | Anyone who qualifies |
| Interest rate | Low and fixed (see figures) | Linked to bank lending rates |
| Term | Long (see figures) | Usually shorter |
| Loan size | Capped by FMBN | Set by the lender |
Find property
Questions
What are the NHF loan requirements?
You must be a registered contributor with a minimum period of continuous contributions, apply through an accredited primary mortgage bank, and offer a property with acceptable title.
How do I apply for an NHF loan?
Confirm your contribution record with FMBN, choose an accredited primary mortgage bank and a property with acceptable title, then apply through that bank.
How much can I borrow from NHF?
Up to the ceiling in the figures box, but the actual amount depends on your income, age and the property's value.
What is the NHF contribution percentage?
Public-sector employees and self-employed people contribute a fixed share of their monthly income, and private-sector employees may choose to; the figure is in the figures box. Sources differ on whether it is worked out on basic salary or total monthly income.
What is the NHF interest rate?
NHF mortgages are on-lent to contributors at a low fixed rate, shown in the figures box.
Related terms
Sources
- 1. NHF mortgage loan Federal Mortgage Bank of Nigeria · checked 13 October 2026
- 2. FMBN: fulfilling home ownership dream through NHF scheme ThisDay · checked 13 October 2026
- 3. How affordable and convenient is the new FMBN mortgage ceiling? Dataphyte · checked 13 October 2026
- 4. National Housing Fund loan conditions Federal Mortgage Bank of Nigeria · checked 13 October 2026
- 5. FG lists requirements for Nigerians seeking N50m housing loan Legit.ng · checked 13 October 2026
- 6. President signs the Business Facilitation Bill into law KPMG Nigeria · checked 13 October 2026
- 7. An overview of Nigeria's Business Facilitation (Miscellaneous Provisions) Act 2023 Lexworth Legal Partners (via Mondaq) · checked 13 October 2026
- 8. National Housing Fund Act, Cap N45 Laws of the Federation of Nigeria 2004 Federal Mortgage Bank of Nigeria · checked 13 October 2026
Cite this definition
"National Housing Fund", Nigeria Property Centre Property Glossary, last checked 13 October 2026, https://nigeriapropertycentre.com/glossary/national-housing-fund
You may reuse this definition under CC BY 4.0 with credit to Nigeria Property Centre and a link to this page.
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